record on t-accounts

Wonderama Playgrounds, Inc. manufactures playground equipment for parks and schools. Their business year is the calendar year and they use a job-order cost system for inventory and sales. Wonderama Playgrounds, Inc. manufactures all products in a single production department. An individual job-order cost sheet is maintained for each job. The job-order cost sheet contains accumulated costs for each job, including actual direct materials, actual direct labor, and applied factory overhead. Factory overhead is applied to each job based on 125% of direct labor costs for that job. Wonderama Playgrounds, Inc. marks up all work by 40% of the job cost (sales price = total cost of job x 140%). Since Wonderama Playgrounds, Inc. sells to builders, contractors, school districts and schools, all sales are exempt from state sales tax. All sales are on account and are subject to terms of 2/10, net30 days, FOB Shipping Point Accounts Payable is used solely for the purchase of direct materials, indirect materials, and factory supplies. All vendors expect full payment within 30 days. Operating expenses, with the exception of any accrued salaries, property taxes, and income taxes, are paid when incurred; all employees are paid at the end of the month. All cash is deposited in the bank when received and all payments are made by check. Following are the transactions for Wonderama Playgrounds, Inc. for January 2020: Jan. 2 Paid Larchmont Advertising Agency $1,363 for designing advertisements to appear in local newspapers in January. Jan. 2 Paid Princely Properties $4,250 for the January rent. Of this amount, 30% is for the office facilities and 70% is for the factory facilities. Jan. 4 Received $30,200.00 on account from customers (no discount allowed). Jan. 5 Sold Job #349, which was finished in December 2019 at a total cost of $39,800, to Happy Jacks Preschool. Jan. 7 Received a check from Lawson Corporation for the amount due. Payment was received within the discount period. (Balance due: $9,420.00, before discount) Jan. 9 Paid Nogood Wood Products $8,562.40 in payment of their January 1 balance. Jan. 12 Collected the amount due from Happy Jacks Preschool for the sale on Jan. 5. Jan. 13 Paid Sorenson Plastics Company $12,925.00 in payment on account. Jan. 15 Applied $3,860.00 of direct materials to Job #351 Applied $10,380.00 of direct labor to Job #351 Jan. 15 Applied factory overhead to Job #351. Jan. 15 Transferred the completed job #351 to Finished Goods. Jan. 15 Jan. 16 Received $35,250.00 on account from customers (no discount allowed). Jan. 17 Jan. 18 Jan. 20 Jan. 20 Jan. 21 Jan. 23 Jan. 23 Jan. 26 Sold and shipped Job #351 to the Smart Contractors. Wonderama Playgrounds, Inc. uses a perpetual inventory system. Purchased $6,329.00 of indirect materials and factory supplies to be used in the manufacture of all jobs currently in process, terms Net 30 days. (Hint: charge directly to Factory Overhead) Accepted a job for the manufacture of a playground unit for Breakwater Unified School District . February 14 is the promised completion date. Began the job today by applying $5,723.00 of direct materials to Job #354. Purchased from Casper Corporation $3.116.25 of indirect factory supplies, credit terms, net 15 days. (Hint: charge directly to Factory Overhead) Received a check for $9,890.00 from Sundial Corporation for the amount due, no discount allowed. Applied $4,765.00 of direct materials to Job #350. Received a check for $9,046.00 from Everest Company for the amount due after the discount period has expired. Applied S2,359.72 of direct materials to job #352. Applied $1,586.00 of Direct Labor to Job +352. Applied factory overhead to Job #352. Transferred the completed job 352 to the Finished Goods account. Applied $4,683.87 of direct materials to job =353. Applied $3,120 of Direct Labor to Job +353. Applied factory overhead to Job #353. Transferred the completed job #353 to the Finished Goods account. Received the amount due from Smart Contractors from the sale on Jan. 17. Sold and shipped Job #353 to the Grace Angelina Company. Paid Casper Corporation the amount due from the January 20 purchase. Applied $5,980,00 of Direct Materials to job #350. Applied $11.242.00 of Direct Labor to Job 350. Jan. 26 Jan. 26 Jan. 26 Jan. 27 Jan. 27 Jan. 27 Jan. 27 Jan. 27 Jan. 29 Jan. 30 Jan. 30 Jan. 30 Jan. 30 Applied factory overhead to Job #350. Jan. 30 Transferred the completed job #350 to the Finished Goods account Jan. 31 Sold and shipped Job #350 to Lawson Corporation. Jan. 31 Paid All Power and Light Company $3,160.00 for heat, power, and light. Allocate 25% for the office facilities and 75% for the factory facilities. Jan. 31 Applied S5,540.00 of Direct Materials to job #354 Jan. 31 Applied S12,257.00 of direct labor to Job #354. Jan. 31 Applied factory overhead to Job #354. Jan. 31 Record the insurance expense for January. The prepaid insurance is for 8 months: Factory 75% General 2596 Jan. 31 Jan. 31 The inventory of office supplies shows that $1,520.00 of supplies were on hand. Depreciation for the month is $1,120.00 for the Factory Equipment and $380.00 for the Office Equipment. Jan. 31 Amortization of the patents for the month is $390.00. (Debit Factory Overhead) Jan. 31 Close the overapplied or underapplied factory overhead to Cost of Goods Sold. 63,259.00 275,000.00 AD - Office Euipment 20,637.19 PIC Excess Par - Common 55,000.00 55,000.00 79,030.00 20,637.19 46,969.48 Advertising Expense Retained Earnings 239,896.11 Work in Process 130,898.00 Factory Equipment 250 822.00 Accounts Receivable 110,624.78 239,896.11 250,822.00 Deprec Exp-Office Equip AD-Factory Euipment 100,816.56 Sales 100,816.56 110,624.78 Office Supplies Exp Accounts Payable 47,585.17 Alow for Doubtful Accounts 3,318.00 Sales Discounts 3,318.00 Utility Expense 47,585.17 Prepaid Insurance 9,400.00 Wages Payable 9,400.00 130,898.00 Insurance Expense Office Supplies 4.212.00 Finished Goods 39,800.00 4,212.00 Rent Expense Patents 13.123.76 29 RON Inanma Tas Pava Deprec Exp-Office Equip A/D - Factory Euipment 100,816.56 Sales 100,816.56 110,624.78 Office Supplies Exp Allow for Doubtful Accounts 3,318.00 Accounts Payable 47,585.17 Sales Discounts 3,318.00 Utility Expense 47,585.17 Prepaid Insurance 9,400.00 Wages Payable 9,400.00 130,898.00 Insurance Expense Office Supplies 4,212.00 Finished Goods 39,800.00 4,212.00 Rent Expense Patents 13,123.76 39,800.00 13,123.76 Income Taxes Payable 37,512.96 Factory Overhead 31,626.97 37,512.96 31,626.97 Wonderama Playgrounds, Inc. manufactures playground equipment for parks and schools. Their business year is the calendar year and they use a job-order cost system for inventory and sales. Wonderama Playgrounds, Inc. manufactures all products in a single production department. An individual job-order cost sheet is maintained for each job. The job-order cost sheet contains accumulated costs for each job, including actual direct materials, actual direct labor, and applied factory overhead. Factory overhead is applied to each job based on 125% of direct labor costs for that job. Wonderama Playgrounds, Inc. marks up all work by 40% of the job cost (sales price = total cost of job x 140%). Since Wonderama Playgrounds, Inc. sells to builders, contractors, school districts and schools, all sales are exempt from state sales tax. All sales are on account and are subject to terms of 2/10, net30 days, FOB Shipping Point Accounts Payable is used solely for the purchase of direct materials, indirect materials, and factory supplies. All vendors expect full payment within 30 days. Operating expenses, with the exception of any accrued salaries, property taxes, and income taxes, are paid when incurred; all employees are paid at the end of the month. All cash is deposited in the bank when received and all payments are made by check. Following are the transactions for Wonderama Playgrounds, Inc. for January 2020: Jan. 2 Paid Larchmont Advertising Agency $1,363 for designing advertisements to appear in local newspapers in January. Jan. 2 Paid Princely Properties $4,250 for the January rent. Of this amount, 30% is for the office facilities and 70% is for the factory facilities. Jan. 4 Received $30,200.00 on account from customers (no discount allowed). Jan. 5 Sold Job #349, which was finished in December 2019 at a total cost of $39,800, to Happy Jacks Preschool. Jan. 7 Received a check from Lawson Corporation for the amount due. Payment was received within the discount period. (Balance due: $9,420.00, before discount) Jan. 9 Paid Nogood Wood Products $8,562.40 in payment of their January 1 balance. Jan. 12 Collected the amount due from Happy Jacks Preschool for the sale on Jan. 5. Jan. 13 Paid Sorenson Plastics Company $12,925.00 in payment on account. Jan. 15 Applied $3,860.00 of direct materials to Job #351 Applied $10,380.00 of direct labor to Job #351 Jan. 15 Applied factory overhead to Job #351. Jan. 15 Transferred the completed job #351 to Finished Goods. Jan. 15 Jan. 16 Received $35,250.00 on account from customers (no discount allowed). Jan. 17 Jan. 18 Jan. 20 Jan. 20 Jan. 21 Jan. 23 Jan. 23 Jan. 26 Sold and shipped Job #351 to the Smart Contractors. Wonderama Playgrounds, Inc. uses a perpetual inventory system. Purchased $6,329.00 of indirect materials and factory supplies to be used in the manufacture of all jobs currently in process, terms Net 30 days. (Hint: charge directly to Factory Overhead) Accepted a job for the manufacture of a playground unit for Breakwater Unified School District . February 14 is the promised completion date. Began the job today by applying $5,723.00 of direct materials to Job #354. Purchased from Casper Corporation $3.116.25 of indirect factory supplies, credit terms, net 15 days. (Hint: charge directly to Factory Overhead) Received a check for $9,890.00 from Sundial Corporation for the amount due, no discount allowed. Applied $4,765.00 of direct materials to Job #350. Received a check for $9,046.00 from Everest Company for the amount due after the discount period has expired. Applied S2,359.72 of direct materials to job #352. Applied $1,586.00 of Direct Labor to Job +352. Applied factory overhead to Job #352. Transferred the completed job 352 to the Finished Goods account. Applied $4,683.87 of direct materials to job =353. Applied $3,120 of Direct Labor to Job +353. Applied factory overhead to Job #353. Transferred the completed job #353 to the Finished Goods account. Received the amount due from Smart Contractors from the sale on Jan. 17. Sold and shipped Job #353 to the Grace Angelina Company. Paid Casper Corporation the amount due from the January 20 purchase. Applied $5,980,00 of Direct Materials to job #350. Applied $11.242.00 of Direct Labor to Job 350. Jan. 26 Jan. 26 Jan. 26 Jan. 27 Jan. 27 Jan. 27 Jan. 27 Jan. 27 Jan. 29 Jan. 30 Jan. 30 Jan. 30 Jan. 30 Applied factory overhead to Job #350. Jan. 30 Transferred the completed job #350 to the Finished Goods account Jan. 31 Sold and shipped Job #350 to Lawson Corporation. Jan. 31 Paid All Power and Light Company $3,160.00 for heat, power, and light. Allocate 25% for the office facilities and 75% for the factory facilities. Jan. 31 Applied S5,540.00 of Direct Materials to job #354 Jan. 31 Applied S12,257.00 of direct labor to Job #354. Jan. 31 Applied factory overhead to Job #354. Jan. 31 Record the insurance expense for January. The prepaid insurance is for 8 months: Factory 75% General 2596 Jan. 31 Jan. 31 The inventory of office supplies shows that $1,520.00 of supplies were on hand. Depreciation for the month is $1,120.00 for the Factory Equipment and $380.00 for the Office Equipment. Jan. 31 Amortization of the patents for the month is $390.00. (Debit Factory Overhead) Jan. 31 Close the overapplied or underapplied factory overhead to Cost of Goods Sold. 63,259.00 275,000.00 AD - Office Euipment 20,637.19 PIC Excess Par - Common 55,000.00 55,000.00 79,030.00 20,637.19 46,969.48 Advertising Expense Retained Earnings 239,896.11 Work in Process 130,898.00 Factory Equipment 250 822.00 Accounts Receivable 110,624.78 239,896.11 250,822.00 Deprec Exp-Office Equip AD-Factory Euipment 100,816.56 Sales 100,816.56 110,624.78 Office Supplies Exp Accounts Payable 47,585.17 Alow for Doubtful Accounts 3,318.00 Sales Discounts 3,318.00 Utility Expense 47,585.17 Prepaid Insurance 9,400.00 Wages Payable 9,400.00 130,898.00 Insurance Expense Office Supplies 4.212.00 Finished Goods 39,800.00 4,212.00 Rent Expense Patents 13.123.76 29 RON Inanma Tas Pava Deprec Exp-Office Equip A/D - Factory Euipment 100,816.56 Sales 100,816.56 110,624.78 Office Supplies Exp Allow for Doubtful Accounts 3,318.00 Accounts Payable 47,585.17 Sales Discounts 3,318.00 Utility Expense 47,585.17 Prepaid Insurance 9,400.00 Wages Payable 9,400.00 130,898.00 Insurance Expense Office Supplies 4,212.00 Finished Goods 39,800.00 4,212.00 Rent Expense Patents 13,123.76 39,800.00 13,123.76 Income Taxes Payable 37,512.96 Factory Overhead 31,626.97 37,512.96 31,626.97